Canadian Dollar Surges Amid Market Turbulence; Gains Despite TSX Dip"

Today's expected range for the Canadian Dollar against the major currencies:

US Dollar        1.3700-1.3800

Euro                 1.4550-1.4650

Sterling            1.7450-1.7550

WTI Oil (opening level) $83.57

The US Dollar index is marginally stronger this morning as the financial markets continue to recover from Monday's chaos. Overnight the Bank of Japan basically went public with their apology for their role in the chaos by raising interest rates last week and promised there would be no more interest rate hikes in the near future. Yesterday saw the DJIA finish close to 300 points higher so it was able to recover about a third of its losses from Monday.

In a surprising move the Canadian Dollar had a strong day yesterday as USD.CAD fell to trade at 1.3740 (0.7278) this morning, the Loonie picked up gains of over 300 points against the Pound and 200 points against the Euro so overall one of the best daily performances for the Loonie in quite a while. It was surprising to see this play out as the TSX closed down 248 points as it played catch-up after Monday's holiday.

Nothing of note on the calendar today so markets will again focus on what stocks and bonds do, most markets were higher overnight and New York is poised to open some 300 points higher so volatility will remain key and we will see if the Loonie can hold onto yesterday's strength for any period of time.